PAGE ONE -- Questions on Rojas' Spending / S.F. school funds used on entertaining, 15 business trips

Nanette Asimov, David Dietz, Chronicle Staff Writers

Published 4:00 am, Friday, March 22, 1996

San Francisco schools Superintendent Bill Rojas has improperly donated public money to a political campaign and spent district funds generously to entertain consultants in upscale restaurants and on a dining yacht, school records show.

A review by The Chronicle found that since Rojas became superintendent in 1992, spending on travel and conferences by his office has more than doubled, to nearly $21,000 a year. He was out of the district on business trips for nine work weeks last year, more than superintendents in other major school systems typically travel.

The investigation also revealed an accounting system in disarray, raising questions about who is keeping track of how Rojas is spending school money at a time when many classrooms lack basic supplies.

Rojas, a popular superintendent who is a national spokesman on key educational issues, apparently violated state law last year by giving $400 to the election campaign that supported renaming Army Street after the late farm labor leader Cesar Chavez. Earlier, in 1994, he spent $2,100 to cruise San Francisco Bay with a group of urban educators.

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In addition, he has charged thousands of dollars in travel expenses for himself and his wife on the school district credit card, with the understanding that the money would be reimbursed by organizations that hosted him. But The Chronicle found several instances where the funds were never paid, and the district wound up with hundreds of dollars in bills. The district is now scrambling to get its money back.

While Rojas' spending seems to have few controls, other parts of the school system are searching for money. Teachers have to dig into their own pockets to meet classroom needs, and facilities ranging from school bathrooms to science laboratories badly need repairs.

Rojas forcefully defended his conduct, as did school board President Steve Phillips. Viewing himself as an "ambassador of goodwill" who works tirelessly for San Francisco schools, Rojas said his spending is aimed at lifting the district profile in educational circles, supporting children's causes and attracting outside funds by visiting governmental and private agencies.

"I need to spend time where there's money and where there are people who can have a dramatic impact on the district," he said.

Rojas said he sees nothing wrong with the donation to the pro-Chavez Street campaign because the school board had formally endorsed the commemorative effort. Rojas is an admirer of Chavez, whose portrait -- signed by the labor leader a week before his death -- hangs in Rojas' office.

LUNGREN'S WARNING

But California Attorney General Dan Lungren pointedly warned school officials during a 1993 controversy that it is illegal to give public money to political causes, and legislation that recently went into effect reinforced the law.

"That's a major concern," said board member Leland Yee when he learned of the Chavez contribution.

Yee called for a review of Rojas' spending. He was joined by several teachers and advocates for students, who noted the lean times in city schools.

"Our school buildings are raggedy. They're falling apart, and it's raining in a lot of them," said an elementary school principal who asked for anonymity. "This money would be better spent making the children comfortable and safe, instead of adults living the high life. That p-- me off. It makes me feel unappreciated."

The review of Rojas' spending shows a fondness for stylish dining and perquisites.

Some of his expenses:

-- Since early 1994, Rojas has charged $2,389 to the district for membership and expenses at the San Francisco Tennis Club. He began to repay the money in December after the expense was challenged by Bill Coleman, whom Rojas recently hired to improve financial management of the schools.

-- In July 1994, Rojas rented a 94-foot Hornblower yacht for a dinner cruise on San Francisco Bay. He hosted 25 people from the Council on the Great City Schools, whose members run the nation's largest urban systems. Cost: $2,113, paid from corporate donations to the schools.

-- In April 1995, the district spent $584 so Rojas and his wife, Teresa, could drive a rental car from New York to New Haven, Conn., where Rojas appeared at a symposium sponsored by Yale Law School. Yale paid for their plane fare to the East Coast.

-- In April 1995, Rojas charged $1,352 on the district credit card to fly to New York to seek a grant from the Rockefeller Foundation and attend a meeting of the National Center for Learning Disabilities. Rojas said at first that nearly the full cost was reimbursed. But when The Chronicle inquired further, the district discovered that no reimbursements had been made. Since the paper brought the issue to light, $688 has been reimbursed by the National Center for Learning Disabilities.

-- Since becoming superintendent, Rojas has put dozens of restaurant bills on his district credit card, including: $189 at Vivande, $123 at Zuni Cafe, $147 at Sol y Luna, $146 at Miss Pearl's Jam House and $158 at Scoma's. The district has also picked up tabs at Stars, Postrio, Square One, Moose's, Hayes Street Grill and elsewhere.

The records give no reason for the expenses. One is simply described "business dinner."

Rojas saw nothing wrong with the charges. He said their purpose was to host top education leaders, which he described as an appropriate activity for a school superintendent. And he called his travels essential to "nurturing relationships in the funding community."

Rojas nevertheless characterized his district's accounting system as "archaic" and said he hired Coleman to change it.

SUBSTANDARD RECORD-KEEPING

The district's record-keeping is substandard under Internal Revenue Service rules and procedures followed by many government agencies. The IRS, for example, requires thorough documentation for expense-account entertainment, including the purpose and the identities of those hosted. San Francisco city workers must submit fully documented proof of expenses, said Assistant Controller John Madden.

As a traveler, Rojas has few peers in the world of public schools. In 1995, he made 15 business trips, taking nine weeks of school time.

He traveled to Washington D.C., five times and spent a week in South Korea as part of an exchange program. Rojas also traveled numerous times to New York -- some trips for business, but most to complete his doctoral studies at Columbia University. He used vacations for most of his time at Columbia.

OTHER EDUCATORS' TRAVEL

In contrast to Rojas, San Jose schools chief Linda Murray took five trips out of state last year, and Superintendent Bertha Pendleton of San Diego took 12. Denver's superintendent, Irv Moskowitz, took two trips.

Board President Phillips, a staunch Rojas supporter, said he finds little fault with the superintendent's travels or spending.

"Bill is a national leader, both by virtue of his position in the district in San Francisco and also by virtue of his vision and his talent," Phillips said. "We want him to play a leadership role."

Phillips argued that spending issues should be weighed against educational improvements. "I am very pleased with the progress this district is making," he said. "A lot of this stuff sounds to me like nickel-and-diming."

Phillips added that the school board should consider paying for Rojas' tennis club membership and expenses. "That doesn't bother me," he said.

But Yee said the board should take a closer look at the spending.

"We've given him a lot of leeway," he said. "There's a general sense of trust between the board and the superintendent. From my vantage point, I don't think the board has looked at things as critically with this superintendent."

NOT JUST NICKELS AND DIMES

Some educators and community activists agreed.

"I don't consider it nickels and dimes," said one school principal. "I consider it bread and butter."

Victoria Raza, a parent who has been active in school affairs, called the spending "a disgrace."

"The money they spent on the yacht is a little ridiculous," she said. "My daughter's school could buy books and playground equipment with the $2,000."

Marybeth Wallace, a PTA executive who works with the nonprofit Coleman Advocates for Children & Youth, asked for a clear accounting of how Rojas' travel and entertainment helps children.

"It just doesn't make sense to me if he's going to these fancy places," Wallace said. "I want some idea that this is all worth it."

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